Senate Bill S10519

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10519
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. GONZALEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to the tangible property credit
   component of the brownfield redevelopment tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (i)  of  paragraph  3 of subdivision (a) of
 section 21 of  the tax law, as amended by section 2 of subpart B of part
 J of chapter 59 of the laws of 2023, is amended to read as follows:
   (i) The tangible property credit  component  shall  be  equal  to  the
 applicable  percentage of the cost or other basis for federal income tax
 purposes of tangible personal  property  and  other  tangible  property,
 including  buildings  and  structural  components  of  buildings,  which
 constitute qualified tangible property and may include any related party
 service fee paid; provided that in determining the cost or  other  basis
 of such property, the taxpayer shall exclude the acquisition cost of any
 item  of  property with respect to which a credit under this section was
 allowable to  another  taxpayer;  and  provided  further  that  for  the
 purposes  of this section, starting with taxable year two thousand twen-
 ty-two, on sites that comply with the track  one  remediation  standards
 promulgated pursuant to subdivision four of section 27-1415 of the envi-
 ronmental  conservation law, stadiums, baseball parks, basketball courts
 and other athletic facilities shall be considered  buildings,  and  that
 components  of  stadiums,  baseball  parks, basketball courts, and other
 athletic facilities constructed on such sites,  including  sports  field
 turf,  site  lighting,  sidewalks,  access  and  entry  ways,  and other
 improvements added to land, shall be considered structural components of
 buildings under the internal revenue code, and shall be included in  the
 definition  of  tangible  property  for  the purposes of this section. A
 related party service fee shall be allowed only in  the  calculation  of
 the  tangible  property credit component and shall not be allowed in the
 calculation of the site preparation  credit  component  or  the  on-site
 groundwater  remediation  credit  component. The portion of the tangible
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15926-02-6
 S. 10519                            2
 
 property credit component which is attributable to related party service
 fees shall be allowed only as follows: (A) in the taxable year in  which
 the  qualified tangible property described in subparagraph (iii) of this
 paragraph  is  placed  in service, for that portion of the related party
 service fees which have been earned and actually  paid  to  the  related
 party  on  or  before  the  last  day of such taxable year; and (B) with
 respect to any other taxable year for which the tangible property credit
 component may be claimed under this subparagraph and in which the amount
 of any additional related party service fees are actually  paid  by  the
 taxpayer  to  the  related party, the tangible property credit component
 for such amount shall be allowed in such taxable year. The credit compo-
 nent amount so determined shall be allowed for the taxable year in which
 such qualified tangible property is first placed in service on a  quali-
 fied  site  with  respect  to which a certificate of completion has been
 issued to the taxpayer, or for the taxable year in which the certificate
 of completion is issued if the qualified tangible property is placed  in
 service  prior  to  the  issuance of the certificate of completion. This
 credit component shall only be allowed for  up  to  one  hundred  twenty
 months after the date of the issuance of such certificate of completion,
 provided,  however,  that  for qualified sites to which a certificate of
 completion is issued on or after March twentieth, two thousand ten,  but
 prior to January first, two thousand twelve, the commissioner may extend
 the  credit  component for up to one hundred forty-four months after the
 date of such issuance, if the commissioner,  in  consultation  with  the
 commissioner of environmental conservation, determines that the require-
 ments  for  the  credit  would have been met if not for the restrictions
 related to the state disaster emergency declared pursuant  to  executive
 order 202 of 2020 or any extension thereof or subsequent executive order
 issued  in  response  to  the  novel  coronavirus  (COVID-19)  pandemic;
 provided, however, with respect to any  qualified  site  for  which  the
 department  of  environmental  conservation  has issued a certificate of
 completion to the taxpayer on or after March twentieth, two thousand ten
 and before December thirty-first,  two  thousand  fifteen,  this  credit
 component shall be allowed for up to one hundred eighty months after the
 date of the issuance of such certificate of completion; PROVIDED, HOWEV-
 ER,  THAT  FOR  QUALIFIED SITES LOCATED IN COUNTIES WITH A POPULATION OF
 GREATER THAN TWO MILLION TWO HUNDRED THOUSAND AND LESS THAN TWO  MILLION
 FIVE  HUNDRED THOUSAND BASED ON THE LATEST FEDERAL DECENNIAL CENSUS, FOR
 WHICH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION HAS ISSUED A  CERTIF-
 ICATE OF COMPLETION TO THE TAXPAYER ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND  SEVENTEEN  AND  PRIOR TO JANUARY FIRST, TWO THOUSAND EIGHTEEN, BUT
 WHICH CANNOT COMMENCE DEVELOPMENT DUE TO ENVIRONMENTAL HAZARDS POSED  BY
 AN  ADJACENT  NEW YORK POWER AUTHORITY PEAKER PLANT FACILITY, THE CREDIT
 COMPONENT SHALL BE ALLOWED FOR UP TO ONE HUNDRED EIGHTY MONTHS AFTER THE
 DATE OF THE ISSUANCE OF SUCH CERTIFICATE OF  COMPLETION;  PROVIDED  THAT
 SUCH  PROPERTY  INCLUDES  A MINIMUM OF FORTY PERCENT PUBLICLY ACCESSIBLE
 OPEN SPACE, AND A MINIMUM  OF  TWENTY-FIVE  PERCENT  AFFORDABLE  HOUSING
 UNITS;  and provided further, with respect to any qualified site located
 in cities with a population greater than two hundred five  thousand  and
 less  than  two  hundred  fifteen thousand in counties with a population
 greater than one million but less than one million ten thousand based on
 the latest federal decennial census for which the department of environ-
 mental conservation has  issued  a  certificate  of  completion  to  the
 taxpayer  on  or  after January first, two thousand seventeen and before
 December thirty-first, two thousand  seventeen,  this  credit  component
 S. 10519                            3
 
 shall  be  allowed for up to one hundred eighty months after the date of
 the issuance of such certificate of completion.
   § 2. This act shall take effect immediately.